Mark, welcome. For about six years now I've been delighted with my M22s and would certainly recommend them to you.
As for a receiver, if you're getting one it's nice in general to get all the latest features that your budget will allow, but no, it isn't essential to have all processing done by the receiver. You might read the explanation that Clint at
Audioholics has written up about the various HDMI versions and the importance(or lack of it)in relation to processing.
At this time a very good buy coming in under your budget would be the factory refurb 605 from
Shop Onkyo . If you register for "Club Onkyo" they have a special $349 price plus a $10 credit and free shipping, which makes the net price $339 delivered.
